Posts Tagged ‘Papua New Guinea’

Paga Hill Development Company CEO Gudmundur Fridriksson implicated in Finance Dept Scandal

November 3, 2014 1 comment

Fridriksson company, CSS Anvil, paid K1.4 million for advising on a fraudulent claim for damages exposed by the Finance Department Commission of Inquiry

In 1997 Lynette Malu claimed K1,094,762.99 from the state, for damages supposedly caused during a police raid. Her husband, Benny Malu, was also a party to the action. They, however, allegedly increased the claim to K4.5 million during 2002, on the advice of consultancy firm CCS Anvil, owned by Paga Hill Development Company CEO, Gudmundur (Gummi) Fridriksson. This conspiracy fell within the terms of reference of the Commission of Inquiry into the Department of Finance.

It all began on 22 September 1990. The Commission of Inquiry into the Department of Finance reports, ‘it is alleged that a faction of Mendi Police Force conducted raids in and around Wabi Sumi and Apote villages at the outskirts of the Kagua Erave Electorate of Southern Highlands Province. The raid was conducted in an attempt to apprehend suspects involved in alleged theft of 100 bags of dried coffee. The consequence of the Police action resulted in a number of plaintiffs allegedly having suffered damages, loss of properties and suffered personal injuries’ (p.268).

There were three separate claims against the state based off this raid. One was led by Yakoa Pape. The second by Benny Baleopa Malu, an individual claim. And the final case was launched by Benny’s wife Lynette Malu.

Then on 17 February 1997 JB Nanei & Co. Lawyers wrote to the Solicitor General proposing to settle the case for K1, 094,762.99 inclusive of interest and costs.

Attached to this case was Benny Malu who had already been awarded damages for K35,008.00 for the same event in 1995. He was double dipping.

In 1998 David Keta Lawyers warned the Solicitor General of the anomalies in the writ submitted by Lynette Malu, noting it was a duplicate of her husband’s original claim. The Commission of Inquiry agreed this was a duplicate claim.

Nevertheless, on 27 November 2002 a ‘Deed of Release was allegedly signed [by the state] in which a consideration of K4.5 million was offered for settlement, which is purportedly inclusive of interests and costs’ (p.271). The Deed of Release was signed by Lynette Malu, and Zacchary Gelu the Solicitor General.

The Commission of Inquiry notes on p.272, that the consideration offered in the signed Deed of Release was ‘K3.4 million more than the initial Quantified Claim of K1,094,762.99 being proposed by the claimants first lawyer, JB Nanei & Co. Lawyers’.

The Commission of Inquiry observes that the claimants’ revised Quantified Claim appears to have been influenced by the claimants’ new lawyers, Nouairi Lawyers & Associates. Benny Malu maintains that the company CCS Anvil oversaw this revised claimed, and the actions of Nouairi Lawyers. CCS Anvil was then owned and run by Gudmundur Fridriksson, along with Sydney businessman George Hallit.

Malu claims that his wife had initially claimed K900,000 – CCS Anvil assisted them to revise this amount upwards to the grand total of K4.5 million.

On 15 April 2003 the Attorney General, Francis Damen, wrote to the Secretary for the Department of Finance advising them to stop payment, given the serious anomalies.

Strangely, just a month later on 20 May 2003 Mr Damen again wrote to the Secretary rescinding his previous letter, and advised settlement. In the end K3,880,000 was paid out to Lynette Malu.

Benny Malu alleges on oath his wife’s claim was overseen by Jack Nouairi in concert with CCS Anvil. Nouairi failed to give evidence to the Commission of Inquiry because ‘he was not feeling well’ (p.275).

According to Benny Malu CCS Anvil was paid K1.4, but had claimed K1.85 million for services rendered.

The Commission of Inquiry concluded the ‘matter appears to be a fraud’, and should therefore ‘be referred to Police for further investigations’ (p.276).

Download the full Commission of Inquiry Report

Susuve Laumaea: PM had no involvment in ‘Oro stupidity’

November 2, 2014 3 comments

Susuve Laumaea

The Prime Minister Peter O’Neill and the People’s National Congress Party had nothing whatsoever to do do with the stupidity that happened in Popondetta. As a Papua Region Marshall myself for PNC we respect all our people-elected governors… We have no time for opportunists like Arore. 

Main thing is: You misinformed Oros please do not spin that bullshit about PM and PNC orchestrating the move to overthrow Gary Juffa. That is a deliberate lie. PM and PNC have the greatest respect for Honourable Governor Juffa.

Please Oro people:.. do not listen to stupid FB activists and bullshit artists and political conmen and conwomen. PM and PNC will be making a public media statement to dissassociate the PM and PNC from the stupidity that Arore spearheaded against Juffa.

Stay out of Papua New Guinea, KL Kepong told

November 2, 2014 Leave a comment

FMT Reporters

SAM and FOTO organise a protest on behalf of Collingwood Bay folk who do not want their customary land developed for oil palm.

SAM and FOTO organise a protest on behalf of Collingwood Bay folk who do not want their customary land taken for oil palm

Sahabat Alam Malaysia and Friends of the Orangutans held a protest outside the Kuala Lumpur Kepong head office in Ipoh demanding that KLK withdraw from Lot 5 in Collingwood Bay, Papua New Guinea and cease all its oil palm activities there.

The protest was made on behalf of the people of Collingwood Bay who claim that despite a court order cancelling the leases of KLK, the company continued to operate in the area with the intention to develop Lot 5.

Despite KLK claiming that Lot 5 was state land, landowner Lester Seri totally disagreed saying, “Lot 5 is within Maisin customary lands and holds primary forest and small patches of ‘kunai grass’ that the communities annually use for game hunting.”

Seri also said 80% of Lot 5 was primary forest and High Carbon Stock (HCS) forest.

Saying that communities in Collingwood Bay depended on the land as a source of income, Seri added, “there is no change, the Collingwood communities do not want oil palm and KLK in Collingwood Bay.”

KLK Bhd is among the largest plantation companies in Malaysia with approximately 250,000 ha of land bank in Malaysia and Indonesia.

In December 2012, the company along with Batu Kawan Bhd collectively acquired 69% of shares in Collingwood Plantation Pte in Singapore from a Malaysian national living in Papua New Guinea.

However on May 20, 2014, a High Court there declared two large land development leases (Lots 113C and 143C) totalling 38,350 ha belonging to KLK Bhd as null and void.

The court also ordered the state to cancel the Special Agriculture and Business Leases owned by KLK after a civil lawsuit was brought against the company by customary landowners who objected to their land being developed into oil palm plantations.

However despite the court-ordered cancellation, KLK has refused to cease its activities.

Arore text message shows attempt to bribe Tufi LLG President

November 2, 2014 2 comments

The political tussle in Oro province has taken a new turn with revelations of a text message that shows how one member of Parliament in the center of the vote of no confidence motion plotted  the removal of Oro Governor, Gary Juffa.

arore textThe text message has been confirmed by Oro’s political insiders to be from Ijivitari MP, David Arore to Tufi Local Level Government President, Jeff Taua. The text message read:

“Bro no money today. M a bit sick today n m sorry but pls r u on my boat?”

The message goes on to promise a bribe of K20,000 as well as an additional K200,000 if the Tufi LLG president, Jeff Taua, sided with him to form the illegal provincial cabinet.

“K10,000 before and K10,000 after. You keep your portfolio n K200,000 to bail ur debts in the LLG out after formation.”

The text message is understood to have been sent in the days leading to a meeting in Port Moresby’s Grand Papua Hotel; a meeting paid for by Community Development Minister, Delilah Gore using her departments funds.

The text message gives hints of a meeting and urges the LLG president to respond so that tickets can be organized.

“Pls respond  so I’ll organize tickets n pls keep this confidential, Your Ambo.”

The text message has since been included as evidence which will be referred to the Ombudsman Commission.

Arore supporters charged with criminal damage in Oro

November 1, 2014 1 comment

Five men involved in the illegal attempts to remove Oro Governor Gary Juffa have been arrested and charged by police…

Melissa Martin | Post Courier

David Arore

Five Arore supporters have been arrested and changed

FIVE people, including former Northern governor Silvanus Siembo, have been arrested and charged with damaging State properties during the political upheaval in Popondetta on Tuesday, police said. The others are former provincial administrator Owen Awaita, Tony Tukari, Larry Savase and Henry Paine.

Southern divisional commander Allan Kundi said they have been charged with unlawful damage and using threatening words on acting Provincial Administrator Robert Dademo.

Mr Kundi said they are out on bail.

The suspects were part of the Ijivitari MP David Arore’s supporters who had entered the premises to elect Mr Arore as the governor for Northern Province in a vote of no-confidence during an assembly meeting.

Police Commissioner Geoffrey Vaki had instructed Mr Kundi to assess the situation in Popondetta and investigate on reports received from incumbent Governor Gary Juffa.

Yesterday Mr Kundi arrived in Popondetta to restore order, adding his men were still investigating what transpired on Tuesday in order to make more arrests. He has urged supporters and members of each faction to keep calm and cooperate while they conduct their investigations.

On Tuesday, Mr Juffa laid a complaint with the police commissioner about the damage done by Mr Arore’s supporters in removing locks with bolt cutters to enter the provincial assembly building.

Protesters take to the streets in Malaysia over Collingwood Bay land grab

October 31, 2014 Leave a comment

KLK collingwood bay protest KL 30102014

KLK collingwood protest KL 2 30102014 2

O’Neill’s illegal logging: 494 days and still counting…

October 31, 2014 Leave a comment


It is now 494 days since Prime Minister Peter O’Neill was told that the SABL leases were unlawful and should be revoked.

It was on June 24, 2013 that he was given the reports of the SABL Commission Inquiry which detail the widespread fraud and mismanagement used by foreign logging companies to gain illegal access to over 5 million hectares of land.

O’Neill has REPEATEDLY STATED the leases will be canceled and illegal logging stopped.

In September 2013 O’Neill told Parliament:

“We will no longer watch on as foreign owned companies come in and con our landowners, chop down our forests and then take the proceeds offshore”

In June 2014, announcing an NEC decision cancelling the leases, O’Neill said

“We are taking these steps to reclaim our customary land illegally lost to foreigners with the help of corrupt public servants and leaders”

“As a responsible government we want to ensure that all citizens have access to the lands of their ancestors. We will not allow our land to be lost to unscrupulous people out to con our people” 

But, WE ARE STILL WAITING for the leases to be cancelled and the logging stopped.

For 494 days O’Neill has failed to revoke the SABL leases and has been complicit in the illegal logging of our forests by foreign logging companies.

Prime Minister Peter O’Neill has aided and abetted the theft of logs worth hundreds of million of kina and the destruction of thousands of hectares of pristine forest.

cartoon showing Peter O'Neill being fed by Rimbunan Hijau while he sits on a pile of SABL reports

Peter O'Neill: Theft of forest resources: Guilty


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